Funds targeting Biodiversity have reached a record high – followed by a 55% decline


Phenix Capital Group has released today its Conservation & Biodiversity Funds Report, revealing that capital commitments have had an inconsistent inflow over the past 7 years. Conservation and biodiversity funds launched in 2020 fundraised the most, which caused the number of funds launched the following year, in 2021, to reach a record high. However, forecasted fundraising didn’t meet expectations. This led to a significant discrepancy in 2021, which saw the capital committed drop significantly.

Post  2020,  we  saw  a  decline  of  55%  year  over  year  in capital commitments towards Conservation & Biodiversity.  This  was  due  to  many  factors,  ranging from  a  worldwide  pandemic  to  investors  preference for  other  impact  themes such as Circular Economy, Net-zero, and others. 

Other key report takeaways

  • The  emergence  of  green  bonds  in  public  debt  has been  paramount.  In  fact,  there  was  nearly  15  billion euros  of  capital  committed  towards  global  markets. This  figure  accounts  for  more  than  80%  of  all  the allocated  capital  towards  this  market  within  public debt
  • In   parallel,   real   assets   are   heavily   focused   on developing  markets,  accounting  for  2/3  of  allocated capital
  • The weight of capital amongst other asset classes also lies heavily  in  favour  of  developing  markets,  showing public debt is the outlier.

Funds  targeting  Conservation  &  Biodiversity  represent 6.5% of funds from Phenix Capital’s Impact Database. The majority of funds targeting Conservation and Biodiversity are open for investments. This presents a ripe opportunity for investors trying to enter the space. We are yet to see the result of funds with 2022 as vintage – funds launched this year are still being counted.

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Graph from the Phenix Capital Group’s Impact Report on Conservation & Biodiversity Funds, revealing inconsistent capital flow through the years and the record of capital commitments in 2020 followed by an unexpected drop in 2021.

Download the full report (pdf)

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